Developing and Qualifying a Prospect Base

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9
Developing and Qualifying aProspect Base
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Learning Objectives

• Discuss the importance of developing a prospect
  base
• Identify and assess important sources of
  prospects
• Describe criteria for qualifying prospects
• Explain common methods of organizing prospect
  information

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Learning Objectives

• Name some characteristics that are important to
  learn about customers as individuals and business
  representatives
• Describe the steps in developing a prospecting
  and sales forecasting plan

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Prospect, Prospecting, and Prospect Base Defined

• Prospect a potential customer that meets the
  qualification criteria established by your
  company
• Prospecting identifying potential customers
• Prospect base is made up of current customers
  and potential customers

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Importance of Prospecting

• Every salesperson must cope with customer
  attrition
• Customers move, firms go out of business, sales
  lost to competition
• Average company may lose 15 to 20 of customer
  base every year

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Girards Ferris WheelSupply
FIGURE
9.1
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Girards Ferris WheelLoss
FIGURE
9.1
CONTINUED
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Prospecting Requires Planning

• Increase number of people who board the Ferris
  wheel
• Improve the quality of prospects
• Shorten sales cycle by determining which
  prospects are qualified
• Prospecting plans must be monitored continuously
  for effectiveness

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Referrals

• Prospect recommended by current satisfied
  customer or one familiar with product or service
• Endless chain ask contact who else could benefit
  from product
• Referral organizations facilitate networking
• Friends, family members, centers of influence a
  person may not make decision but has influence on
  those who do . . . opinion leaders

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HancocksLead Generation
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Business Network International

• Visit the worlds largest referral organization
• www.bni.com

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Directories

• Hundreds of business and industrial directories
  available
• Many major trade associations publish directories
  
• Be sure to use current copy or edition as
  prospects shift firms track people and companies

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Thomas Register
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Trade Shows/Publications

• Trade shows and conventions your company may
  have a booth at key trade shows/expositions
• Trade publications each industry has trade
  publications that sales professionals need to
  read
• Join trade associations many salespersons join
  trade associations to gain access to potential
  buyers

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Telemarketing

• Telemarketing the practice of marketing goods
  and services through telephone contact
• To identify buyers and generate contact lists for
  sales staff
• To qualify prospects
• To verify sales leadsgenerated by other methods
• To conduct follow-ups

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Direct Response andSales Letters

• Direct response advertising often features
  inquiry cards or information requests via mail or
  telephone
• Sales letters send sales letters to decision
  makers, then follow up

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Website

• Websites provide cost-effective way for sales
  professionals to
• Project personal image
• Provide additional information
• Generate leads from visitors to site
• Present product information
• Establish e-mail lists

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Computerized Databases

• In-house databases your firm may already have a
  comprehensive database sometimes referred to as
  the house list with details on customers,
  purchase patterns, and so forth
• List sources wide range of precise lists
  available from variety of sources
• See www.infoUSA.com

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Computerized Databases

• Purchasing databases or lists can be costly
  price usually set on cost-per-thousand names
• Not all relevant databases are equal some pull
  better than others
• Pull is the percentage of the list resulting in
  qualified prospects or actual sales

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Cold Calling

• Simply calling prospects without referrals
• New salespeople rely on these as they havent
  built referral base
• Must be strategically planned
• Prelude to in-person appointment
• A way to introduce yourself and your company to a
  prospect

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Networking

• Making and profiting from personal connections
• Networking guidelines
• Meet as many people as you can
• Tell them what you do
• Do not do business while networking
• Offer business card
• Edit contacts and conduct follow-ups

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Three Types of Networks
FIGURE
9.2
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Educational Seminars

• Provide opportunity to showcase product without
  pressuring to buy
• Require extensive preparation
• Start value-added process
• Can attend or present at industry sponsored
  seminars or offer your own

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Non-Sales Employees

• Non-sales personnel can be valued source of leads
  
• Prospecting not necessarilyexclusive task of
  sales force
• Non-sales personnel oftenneed training and
  incentives

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Combination Approaches

• Salespersons generally rely on combination of
  prospecting methods
• Some methods have higher yield than others
• Important to use CRM technology to help maximize
  efficiency

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Discussion Questions

• If you were selling ACT! contact management
  software, how might you develop a prospect list?
• If you were a personal investor, how might you
  develop a prospect list?
• If you worked for an international shipping
  company, how might you develop a prospect list?

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Qualifying Prospects

• Key time-saving criteria
• Does the prospect need my product?
• Can prospect make the buying decision?
• Can prospect pay for the purchase?
• Will anyone close the sale?

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Organizing Prospect Information

• Prospect as an individual
• Prospect as a business representative

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Prospect Information

• Harvey Mackay suggests 66-question customer
  profile.
• See it at
• mackay.com

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Prospecting and Sales Forecasting Plans

• Important to balance time and organize contacts
• Prepare a list of prospects
• Forecast potential sales volume for each new
  account, by product
• Carefully plan the sales route to minimize time
  and cost